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What are the key issues for investors in South Africa’s 2024 election?

What are the key issues for investors in South Africa’s 2024 election?

South Africans vote in a national election on May 29 and, for the first time since the end of apartheid 30 years ago, polls suggest the ruling African National Congress party (ANC) is at risk of losing its parliamentary majority. Investors are paying close attention. WHY IS A MAJORITY IMPORTANT? If the ANC gets less than 50% support it would have to seek one or more coalition partners to govern Africa's most industrialised economy. The new parliament will choose South Africa's next president. The new government will set fiscal and economic policy for the coming five years, and investors want to see if the…
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These valuations are crazy’: The potential unlock in SA shares

These valuations are crazy’: The potential unlock in SA shares

CO-MANAGER of the R1.1bn ClucasGray Equity Prescient fund, Andrew Vintcent, believes that the thesis for holding depressed South African shares is as compelling as it’s ever been. ‘These valuations are crazy,’ Vintcent told Citywire South Africa in an interview. ‘Not all the shares we own are trading on a six or seven P/E, but that are a lot of shares on the JSE that do.’ He added that while last year and the first quarter of 2024 were particularly difficult for local equity managers, he believes that the potential for patient investors to earn outsized rewards by staying invested is…
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Nigeria revokes 924 dormant mining titles, seeks new investors

Nigeria revokes 924 dormant mining titles, seeks new investors

NIGERIA has revoked 924 dormant mining titles immediately and invites investors to freely apply for the affected licences which will be offered on a "first come, first served" basis, its minister of mines said. The affected titles include 528 exploration licences, 20 mining leases, 101 quarry licences, and 273 small-scale mining licences, Mines Minister Dele Alake said in a statement. In November, more than 1,600 mining titles were revoked for non-payment of statutory fees as part of sweeping reforms in the sector. Alake said the action was taken to curb "licence racketeering" where companies or individuals secure titles that hold…
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More African founders secure $1M+ Funding in new trend

More African founders secure $1M+ Funding in new trend

START-UPS in Africa are increasingly hauling in US$1 million or more in funding, even as the investment climate on the continent cools off. Data from Africa: The Big Deal, shows ventures raising over US$1 million thrive due to their bankability, suggesting a selective but keen interest from investors amidst a cautious investment backdrop. "While the amount raised quarterly is still at its lowest since Q4 2020, we can see that the number of ventures raising at least $1m during a quarter has started to bounce back in Q3 2023 and continued to do so consistently since," The Deal says. Investors…
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Senegal’s election: What is at stake for investors?

Senegal’s election: What is at stake for investors?

INTERNATIONAL investors will be closely monitoring the presidential election in Senegal, scheduled for March 24, after delays incited widespread protests. The country, usually one of coup-prone West Africa's most stable democracies, has been gripped by tension since early February, when President Macky Sall tried to postpone the vote that had been due to take place on Feb. 25 by 10 months, leading to warnings of democratic backsliding. WHAT ARE INVESTORS FOCUSED ON? Senegal has about $4.2 billion of outstanding international bonds, two issued in euros and three in U.S. dollars. For investors in those bonds, the current focus is on whether the presidential vote will be…
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Investors bet big on Africa’s logistics potential

Investors bet big on Africa’s logistics potential

AFRICA'S logistics sector is growing into a lucrative market and strategic hub within the global logistics network as investors' confidence in the sector increases. A new report by logistics company Agility confirms the global logistics industry is considering expansion plans or first-time investments in the continent’s logistics sector. According to Agility Vice Chairman Tarek Sultan, “This is the most optimism we’ve seen about Africa in the 15 years of the Index.” Notably, 47.4% of respondents are planning additional investments in Africa, while 14.2% of the logistics executives from different companies are planning first-time investments on the continent. Only 6.6% of…
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For investors, 2024 is year of transition to a new economic order

For investors, 2024 is year of transition to a new economic order

INVESTORS appear convinced that major Western central banks are close to a much-awaited pivot, from raising interest rates to cutting them. Markets rallied as a result, but 2024 could hold surprises as the world adjusts to an economic order where money is not cheap. Global stocks rallied and top government bond yields fell in recent weeks, despite central bankers cautioning against pivot bets. In the United States, for example, investors are now effectively positioned for the Federal Reserve guiding the economy to a perfect landing, bringing down inflation without triggering a recession. The market's conviction comes after the U.S. economy surprised people with its resilience. That was…
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Investors bank on African timber for sustainable building boom

Investors bank on African timber for sustainable building boom

WOODEN buildings like the engineered timber construction planned for the world's tallest wood building in Zanzibar may only be starting to appear in cities worldwide but that is not stopping investors from betting on wood becoming a key building block in African construction. "About 200 years ago, everyone was building with timber, then it shifted to cement, steel, and stones. Now people are going back, especially with modern housing," explained Karl Kirchmayer, co-founder and managing partner at ASC Impact. Although wood buildouts in major cities and towns are hardly in the mainstream, the trajectory, based on recent commercial activity, leans…
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Senegal president tells investors ‘repressive’ rules will be simplified

Senegal president tells investors ‘repressive’ rules will be simplified

SENEGALESE President Macky Sall promised investors that "difficult and repressive" customs and tax rules would be reformed as the West African nation seeks to lure more foreign capital. Addressing more than 50 foreign delegations at an investment forum in the capital Dakar, Sall said Senegal had to simplify its administrative processes to make its business climate more attractive. "The fiscal environment is purposely set up in a way that it is not understood," he said in an opening speech. "We also need to reform the customs code, which honestly is also difficult and repressive, the tax code, and the civil…
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Investors train eyes on African youth with gaming campuses

Investors train eyes on African youth with gaming campuses

IN early June, Maliyo, a game studio in Nigeria began training its pioneer class of 27 participants, drawn from the West African country as well as Kenya, Cameroon and South Africa, while this July, Microsoft is scheduled to run a 2-day virtual gaming camp that will take place across four African cities: Cairo, Lagos, Nairobi, and Johannesburg. Also lining up in a growing list of gaming academies and short-term learning experience camps springing up on the continent is ‘Level up Africa’ with a planned student intake in early 2024. Organisers of all these virtual and onsite programs -lasting from two…
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